- 2024-01-31T00:00:00
- Company Research
- ACV announced Q4 2023 results with revenue and PBT adjusted for FX gains/losses increasing 24% and 5% YoY, respectively.
- In 2023, these two metrics surged 39% and 97% YoY, achieving 99% and 89% of our respective forecasts.
- Q4 2023 revenue jumped YoY as international passengers nearly doubled YoY, which is partly offset by a 15% YoY drop in the domestic passenger number amid weak consumer sentiment.
- EBITDA margin trailed our expectation, edging down from a low 38% in Q4 2022 to 37% in Q4 2023 due to bad debt provisions.
- Net bad debt grew from VND3tn (end-2022) to VND3.9tn (end-Q3 2023) but slumped to VND2.9tn (end-2023) as ACV recognized VND1.1tn of bad debt provision in Q4 2023.
- We see a slight downside risk to our forecast due to weaker-than-expected domestic tourism, pending a fuller review. Regarding bad debt, we have already factored in our forecast VND5.4tn of provision expenses for the 2023-2025 period and assume ACV will reclaim most of this amount in 2026—2028.
- The Ministry of Finance’s latest Draft to amend Decree 140/2020, if approved, would exempt ACV from paying all its profits as cash dividends, which many State-owned companies are required to do. This was suggested in order to allow ACV to be more flexible in funding the Long Thanh International Airport project.
ACV’s 2023 results
VND bn | Q3 2023 | Q4 2022 | Q4 2023 | Q4 2023 YoY | 2022 | 2023 | YoY | 2023/ 2023F | 2023F |
Net revenue | 5,328 | 4,080 | 5,047 | 24% | 14,453 | 20,032 | 39% | 99% | 20,180 |
Aeronautical revenue | 3,737 | 2,847 | 3,429 | 20% | 9,903 | 13,896 | 40% | 98% | 14,149 |
Take-off and landing fees | 682 | 585 | 639 | 9% | 2,167 | 2,571 | 19% | 99% | 2,586 |
Non-aeronautical revenue | 909 | 647 | 979 | 51% | 2,408 | 3,581 | 49% | 101% | 3,556 |
ACV’s net revenue * | 4,646 | 3,494 | 4,408 | 26% | 12,312 | 17,477 | 42% | 99% | 17,593 |
Gross profit | 3,331 | 1,891 | 2,697 | 43% | 6,558 | 11,924 | 82% | 95% | 12,504 |
SG&A | -1,009 | -940 | -1,410 | 50% | -1,963 | -3,697 | 88% | 115% | -3,219 |
EBIT | 2,322 | 952 | 1,287 | 35% | 4,594 | 8,227 | 79% | 89% | 9,285 |
Financial income | 995 | 643 | 648 | 1% | 3,902 | 2,501 | -36% | 105% | 2,374 |
Financial expenses | -20 | -30 | -44 | 46% | -855 | -410 | -52% | 618% | -66 |
Net income from associates | 113 | 45 | 32 | -28% | 196 | 277 | 41% | 120% | 231 |
Net other income/expenses | 4 | 109 | 18 | -84% | 6 | 26 | 364% | 77% | 34 |
PBT | 3,414 | 1,719 | 1,941 | 13% | 7,843 | 10,621 | 35% | 90% | 11,858 |
PBT adj. for FX gains/losses | 2,920 | 1,576 | 1,722 | 9% | 5,192 | 10,213 | 97% | 89% | 11,417 |
NPAT | 2,764 | 1,254 | 1,565 | 25% | 7,127 | 8,574 | 20% | 88% | 9,731 |
NPAT-MI | 2,763 | 1,251 | 1,561 | 25% | 7,122 | 8,564 | 20% | 88% | 9,702 |
ACV’s NPAT-MI | 2,415 | 1,031 | 1,310 | 27% | 6,116 | 7,321 | 20% | 85% | 8,580 |
State’s NPAT-MI ** | 348 | 220 | 251 | 14% | 1,006 | 1,243 | 24% | 111% | 1,122 |
D&A | 4% | 609 | 590 | -3% | 2,339 | 2,364 | 1% | 103% | 2,305 |
EBITDA | 11% | 1,561 | 1,877 | 20% | 6,933 | 10,591 | 53% | 91% | 11,590 |
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GPM | 62.5% | 46.4% | 53.4% |
| 45.4% | 59.5% |
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| 62.0% |
SG&A margin | 18.9% | 23.0% | 27.9% |
| 13.6% | 18.5% |
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| 16.0% |
EBITDA margin | 55.0% | 38.3% | 37.2% |
| 48.0% | 52.9% |
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| 57.4% |
NPM * | 52.0% | 29.5% | 29.7% |
| 49.7% | 41.9% |
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| 48.8% |
Source: ACV, Vietcap forecast. Note: (*) Excluding contribution from State-invested aviation assets;
(**) NPAT-MI from assets owned by the State (State-invested aviation assets) — the State authorizes ACV to manage these assets (including runways).
ACV’s accounts receivable as of YE2023 (VND bn)
Client | Total | Gross doubtful receivable | Net doubtful receivable |
All clients | 6,287 | 6,521 | 2,876 |
Vietjet Air | 2,982 | 2,030 | 1,478 |
Bamboo Airways | 2,133 | 2,112 | 205 |
Vietnam Airlines | 1,832 | 1,232 | 1,090 |
Pacific Airlines | 874 | 850 | 90 |
Source: ACV, Vietcap
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